ICAI Intensifies Disciplinary Measures Against Errant Chartered Accountants
In response to growing criticism regarding its disciplinary actions, the Institute of Chartered Accountants of India (ICAI) has significantly increased its measures against errant members.
Since the current disciplinary framework was established in 2007, a total of 2,652 chartered accountants have been found “prima facie guilty” of misconduct. However, recent efforts have led to a greater number of proceedings and actions being taken.
From April to August, the ICAI completed over 200 hearings during 71 panel sittings, resulting in the suspension of some chartered accountants’ memberships for periods ranging from one month to five years. Last financial year saw a record high of 366 sittings—nearly triple the number from 2022-23.
This year, the number of punishments handed out is at its peak in three years, although this surge can be attributed to the resolution of several cases following a Supreme Court ruling.
Of the 2,652 cases referred for inquiry, hearings have concluded in 2,284 cases, allowing the parties involved the opportunity to present their side before the Board of Discipline and the disciplinary committee,” a source stated.
Among the cases where hearings have concluded, 1,080 Chartered Accountants were found guilty of professional or other misconduct. Notably, 486 of these cases were referred by the government, with hearings completed in 387 of them, resulting in 165 members being held accountable.
Over the years, ICAI has faced scrutiny for its inadequate disciplinary measures, leading the government to withdraw some of its powers and establish the National Financial Reporting Authority (NFRA). This new body is responsible for investigating cases against auditors and audit firms associated with listed and large companies, sparking significant opposition from the Chartered Accountant community.
Nonetheless, a senior ICAI official defended the organization’s disciplinary record, asserting that the institute previously did not adequately publicize actions taken against its members, contributing to a negative perception.
